Ecological resource deficits as opportunities for environmental innovation across countries

Abstract

PurposeWhile previous research has identified that environmental innovation is shaped by a variety of drivers, researchers have devoted limited attention to the role of nature-based resources in the country. Building on environmental innovation theory and the natural resource-based view of the firm, this study introduces ecological resource deficits as a novel driver of environmental innovation. The authors explore how ecological resource deficits interact with institutional and regulatory drivers as well as firm-level technology drivers to explain the extent of environmental innovation across different countries.Design/methodology/approachThe authors apply fuzzy-set qualitative comparative analysis to a multi-source dataset to identify different pathways for environmental innovation across 28 countries.FindingsFindings show that higher environmental innovation is a function of ecological resource deficits complemented by the presence of at least two other conditions. Moreover, the results show that environmental policy stringency and societal expectations are substitute conditions of environmental innovation.Originality/valueThis study reveals the interdependences between different conditions for environmental innovation across countries contributing to a more nuanced understanding of the geography of environmental innovation.